IMF delegation reaches Pakistan for climate financing talks

An International Monetary Fund (IMF) team on Monday landed in Pakistan to discuss climate financing, ARY News reported citing sources.

As per details, discussions will focus on green budgeting, climate spending tagging, tracking, and reporting. For the upcoming fiscal year 2025-26, the government is considering imposing a carbon levy, with initial proposals set to be discussed in the next round of negotiations.

The IMF delegation is expected to provide recommendations regarding the levy.

The talks, which will continue until February 28, will also cover carbon levies, electric vehicles, and subsidies. Additionally, the IMF is set to propose measures to expand green budgeting in the next fiscal budget.

Negotiations will solely focus on climate change initiatives, with federal and provincial representatives briefing the IMF delegation on their respective climate action plans.

This visit follows a successful meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva in Dubai.

The IMF had been supporting Pakistan’s economic development and reform efforts through various programs, including the Extended Fund Facility (EFF) arrangement.

The development came after PM Shehbaz Sharif’s meeting with Managing Director of the International Monetary Fund Kristalina Georgieva wherein both sides discussed Pakistan’s ongoing IMF program and the macroeconomic stability achieved through the government’s comprehensive reform agenda.

Climate fund

On September 27, Pakistan requested an additional $1.5 billion loan from IMF to combat the impacts of climate change in the country.

During a meeting with IMF Managing Director Kristalina Georgieva, Prime Minister Shehbaz Sharif discussed the need for urgent action to control climate change in Pakistan.

The loan will support Pakistan’s Climate Resilience and Sustainability Facility, which aims to promote economic stability and sustainable development in the country.

It is important to mention here that the International Monetary Fund Executive Board on September 25 approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about US$7 billion.